Financials

in Fact sheets

Operating revenue
2018 in $M 20171 in $M 20161 in $M
Operating revenue (GAAP) 41,303 37,784 36,558
Operating expense
2018 in $M 2017 in $M 2016 in $M
Operating expense (GAAP) 38,074 34,113 32,214
Less: Special operating expense −487 −176 −745
Equals: Operating expense, excluding special operating expense (non-GAAP) 37,587 33,937 31,469
Less: Employee salaries and related costs −11,458 −10,941 −10,176
Equals: Non-labor operating costs 26,129 22,996 21,293
Operating income
2018 in $M 2017 in $M 2016 in $M
Operating income (GAAP) 3,229 3,671 4,344
Add: Operating expense: special charges 487 176 745
Equals: Operating income, excluding special operating expense (non-GAAP) 3,716 3,847 5,089
Net income
2018 in $M 2017 in $M 2016 in $M
Net income (GAAP) 2,122 2,144 2,234
Add/less: Operating and nonoperating expenses: special charges, net of income taxes 377 −79 588
Add/less: Economic hedge adjustment: Prior period gains/losses on fuel contracts settled in the current period 0 0 6
Add/less: Interest expense on ERJ 145 finance lease 26 0 0
Add/less: Less: Income tax benefit related to adjustments on ERJ145 leases −6 0 0
Equals: Adjusted net income (non-GAAP) 2,519 2,067 2,828

Operating and nonoperating expenses: special charges

Operating and nonoperating special charges, net
2018 in $M 2017 in $M 2016 in $M
Operating expense: special charges 487 176 745
Severance and benefit costs 41 116 37
Impairment of assets 377 25 412
Termination of engine maitenance service agreement 64 0 0
Labor agreement costs 0 0 171
Cleveland airport lease restructuring 0 0 74
Sale of assets and other special gains/losses, net 5 35 51
Nonoperating expenses: special charges, net of income taxes
2018 in $M 2017 in $M 2016 in $M
Nonoperating expense: special charges, net of income taxes −110 −252 −157
Unrealized (gains) losses on investments, net 5 0 0
Loss on extinguishment of debt and other, net 0 0 −108
Income tax benefit related to special charges −110 −63 −229
Income tax benefit associated with special tax adjustment −5 −189 180
Total operating and nonoperating expenses: special charges, net of income taxes
2018 in $M 2017 in $M 2016 in $M
Total operating and nonoperating special charges, net 377 −79 588

Footnotes:

  1. Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

Notes: Pursuant to SEC Regulation G, UAL has included the above reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL’s ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. Certain prior period amounts have been reclassified to conform to the current period presentation. For additional information related to special items, see Note 14 to the financial statements included in the 2017 Annual Report Form 10-K.